Earth economics studies the economy of our planet from the perspective of an autarkic system (a “closed economy”). It ignores the constituent national and regional parts of the planet economy and focuses on the whole. The book respects the heritages of IS/LM (Keynes) and neoclassical growth (Solow) not out of economic respect but because these tools are very useful in understanding the crisis and the policy response to that crisis.

This
paper critically reviews the theoretical basis for the provision of the global
financial safety net (GFSN) and provide a comprehensive database covering four
elements of the GFSN (foreign exchange reserves, IMF financing, central bank
swap lines and regional financing arrangements) for over 150 countries in the
sample period 1960-2015. This paper also presents some key stylised facts
regarding the provision of GFSN financing and compares macroeconomic outcomes
in capital flow reversal episodes depending on how much GFSN financing was
available to countries. Finally, this paper concludes with some avenues for
further research on the possible evolution of the GFSN.